THEPRESIDENTIALJOBSSUMMITFRAMEWORKAGREEMENT

4October2018

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STATEMENTOFJOINTPURPOSEThePresidentrequestedNEDLACtoconveneSocialPartnerstoaddressthecrisisofunemployment. SocialPartnersapproachedthischallengeonthebasis thatthereisaneedforvisiblechangesinthelivesofourpeopleaswellastheeconomy.TheJobsSummitlaysthebasisformoreresponsiveandeffectivecollaborationtodeliveronthepromiseofabettereconomyforallSouthAfricans,byensuringthatcommitmentsareclearandprecise,thattheystrengthenexistinginitiativesanddevelopnewones;andthattheytakeintoaccountthechallengesfacedbyeachSocialPartner.ECONOMICCONTEXTOverviewSince2014,economicgrowthinSouthAfricahassloweddownandbecomemorevolatile.Atthesametime,wehavenotqualitativelyreducedthejoblessnessandinequality that emerged before democracy. These twin burdens are the mainblockagetosustainedeconomicprogress.Mining and formal manufacturing have been particularly hard hit by theslowdownofthepastfewyears,whichhas.worsenedSouthAfrica’spersistentlyhighjoblessnessandinequality.OfcountriesthatreportaGinicoefficient,SouthAfricainvariablyranksamongstthemostunequaltwoorthreeintheworld.ThisJobsSummitcommitmentcarrieswithittherecognition,byall,thatwecanonly address the weaknesses in our economy if all social and economicstakeholdersworktogether.PrinciplesandstrategiesunderpinningthisprocessSocialPartnersrecognisethattosucceed,thereisalsoaneedtoaddressthepillarsof our growth strategy some of which may fall outside the scope of the JobsSummit.Theseinclude:

• Ensuring sound and responsive government that prioritises inclusivegrowth.

• Investmentpromotionandupgradingindustrialcapacity.

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• Holisticsupportfortownshipandruralenterprises.• Increasedworkplaceequality.• Upgradingskillsandeducation.• Infrastructuredevelopment.• Maintainingandstrengtheningthesocialsafetynet.• Innovative, worker-friendly measures to assist firms facing emerging

challenges.While someelementsof this implicit strategy fall outside the scopeof the JobsSummit,iteffectivelyshapedtheworkstreamsoftheJobsSummit,whichwere:• Economicsector-specificinterventions;• Small,mediumandmicroenterprisessupport;• Educationandskills;• Inclusivegrowth,transformationandinequality;and,• Publicandsocialprogrammes,labourmarketandanti-corruption.TakingforwardwideremergingimperativesSocial partners recognise that the implementation of this agreement is notsufficientonitsowntoaddressthecrisisofunemployment.SocialPartnershavetherefore agreed that beyond the agreements outlined in this FrameworkAgreement, there is a need to ensure that an additional process is followed toconsider those issues that couldnot beadequately addressed,within thelimited timeframe of the Jobs Summit. The implementation of this processformspartofthemonitoringandevaluationmechanismasdiscussedbelow.Thefinal list of issues will be defined in a month of the signing of the agreementtogetherwiththetimeframeof theconclusionofeach itembutwillnotextendbeyondseven(7)months.Thisphasedapproachisbasedontherecognitionthatthecollaborativeapproachthathasbeenfollowedwithinthisprocessshouldbeusedasaplatformforfurtherengagementonmacro-economicissuesandothercatalyticactions,whichcouldbetakentoaddressthetriplechallengesofunemployment,povertyandinequality.ProtectingJobs

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SocialPartnersagreedthattheunemploymentcrisisnecessitatestheJobsSummittofocusnotonlyonthecreationofjobsbutalsoontheimperativetoaddressthecrisisof job lossesand retrenchments.Doing sowill requireboldness, resolve,innovation,collaborationandcreativity.

Government has reiterated that there will be no retrenchments in the publicsector and it has committed to addressing the imperative of filling all criticalvacanciesinthePublicSector.

BusinessagreesthateverythingpossiblemustbedonetoavoidretrenchmentsinthePrivateSector.Itrecognisesthatthereareroutesbacktohealthforstrugglingcompanieswhich do not require the retrenchment ofworkers, and that theseoptionsshouldbefollowedinthespiritoftheJobsSummit.Italsorecognisesthatcompaniesbeartheprimaryresponsibilityforinitiatingandimplementingactionstoavoidjoblosses.

Illustrativeactionshavebeen identified, as tools toavoid retrenchments, allofwhichmustbeconsidered,includingbutnotlimitedtoarevisedTrainingLayoffScheme(TLS)asafirstport-of-callbycompaniesincrisis.AgreementonjointmonitoringframeworkSocial Partners agreed that one of the deficiencies of previous summits andagreementshasbeenthefailuretomonitorimplementation,and,totakeremedialactionwhereinsufficientprogresswasbeingmade.Itwasthereforeagreedto:

• Establish a Presidential Jobs Committee which will receive progressreports on a quarterly basison the implementation of the action plans;monitorthestatusofemploymentandunemploymentinthecountry;and,takeremedialactionwhererequired.

• Establisha joint technicalcommitteeof thePresidential JobsCommitteewhichwouldundertakethefollowingactions:

o Develop a monitoring and evaluation framework based on theoutcomes anticipated from the action planswithin onemonthofsigningtheagreement.

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o Ensure sustained collaboration amongst Social Partners,particularly in relation to improving outcomes and unlockingchallenges

o Ensure that progress reports aremade available on theNEDLACwebsite

ThisprocesswillbothensurethattherecanbeeffectivemonitoringoftheintendedresultsoftheJobsSummit(assetoutintheActionPlans)andenhancethesuccessoftheseinterventions.Thismechanismwillalsoensurethatthereisthecapacitytoadapt,reformand/orscaleupprojectsandpoliciesifrequiredtoachievebetterresultsandinclusivegrowth.Realisingtheintendedoutcomesmayalso require a reviewof assumptions andmay suggest the need for additionalinterventions to be implemented. This includes those discussed as part of thewideremergingprioritiesandmayalsoincludeadditionalinterventions.ThisAgreementprovidesastatementofcommitmenttoarangeofinterventions,whicharesetoutingreaterdetailinAnnexureOne. COMMITMENTSTOINCREASEACCESSTOEMPLOYMENTECONOMICSECTORSPECIFICINTERVENTIONSSocialPartnersagreedthatitisimperativetosecuresubstantiallyfastergrowthof the agriculture, mining andmanufacturing sectors as these sectors are keydrivers of exports and investment. In addition, Social Partners recognise thatmanyoftheeconomicenablers,whichhavebeencommittedto,aresupportiveofthe growth of firms, co-operatives, SMMEs and worker enterprises across allsectors of the economy and are therefore likely to lead to a broad-basedimprovement in the business environment and conditions for entrepreneurialdevelopment.ProcurementInterventionsBoostingdomesticdemandSocialpartnersagreedtostrengthen,expandandfast-trackadditionallocalprocurementofgoodsandservicesbyGovernmentthroughthedevelopment

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and implementation of the designation process. In addition, Government willestablishahotline to receiveanddealwith complaintson fraudulent claimsoflocal content, claims that a tender specification is flawed, and claims thatdesignationsarebeingignoredorcircumvented.OthersocialpartnerswillsupportGovernment’sdesignationinterventionthroughimplementingthefollowingmeasures:

• OrganisedlabourcommitstotrainitsaffiliatesonthesuccessfulSACTWU

tendermonitoringsysteminpartnershipwithProudlySA,andtoproactivelyidentifyopportunitiesfornewdesignations.

• Organisedlabour,CommunityandBusinesswillsupportandcommunicatethedetailsofthehotlinetoitsmembersandconstituencyfortendersthatseektobypasslocalprocurementregulations.

SocialPartnersagreedthataconcertedandmorevisiblepublicexercisebyBusiness to highlight the importance of local procurement is imperative.BusinesscommitstoarangeofinitiativesworkingwithGovernmenttodevelopmechanisms to increase local procurement. This will include structuredengagements over the next twelve (12) months with five hundred (500)corporatesonlocalprocurement.Theseinitiativesincludesectorandcompanyspecificinterventions.Anumberofcorporateshavemadepubliccommitmentstolocalprocurementinitiativesasanintegral part of their operational strategies. Some of these also includecommitments to enterprise development which are integral to many of theirlocalisationstrategies.Itisanticipatedthatinthecomingmonthsmorecompanieswill follow the leadofAdcock Ingram,AngloGoldAshanti,Clientele,CocaColaBeverages SA, Edcon, First Rand, Lixil, Nando’s SAB/Inbev, SAPPI, Sasol andStandardBankwhohavemadecommitmentsaspartofthisagreement.IdentifyandpursueimportreplacementopportunitiesTheManufacturing Circle is exploring the development of an ‘ImportTracker’,which will provide intelligence and early warning of import surges. Thisinterventionwillhighlighttrendsandconcernsandallowappropriateactiontobetakenwhererequired(forexamplelinkedtoanti-dumping).

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GrowingandDeepeningSAExportsAdoptingamoreaggressiveapproachtoincreasingexportsSocialpartnersacknowledgetheimportanceofexpandingexportmarketstogrowdomesticproductivecapacityandhavethereforeagreedtoarangeofexportstoachievethisobjective.FocussingindustrialfinancingtotransformandupgradetheeconomyTheFinancialSector,throughtheFinancialSectorCode,commitstoinvestR100bn(over5years) inBlackenterprisesandfirmsempoweredatLevel6andabovewithintheindustrialsector.TheFinancialSectorTransformationCouncilandthedtiarecurrentlydevelopingtheGuidelinesforthedisbursementofthisfunding.DisbursementofthefundingwillbeginoncetheGuidelineshavebeenfinalised.TheFinancialsectorandGovernmentcommittoworktowardsasinglepointofentryforenterprisesneedingtoaccessindustrialfinancethroughthecreationofanappropriateinstitutionalarrangement.TheFinancialSectorandGovernmentcommit towork towardsa singleduediligence standard,which is acceptedbymultiplefinanciers.Inaddition,theFinancialSectorandGovernmentcommittodevelopan‘interestmake-up’ facility through which the industrial sector can access finance atpreferentialrates,whichwillbefundedbyGovernment.TheFinancialSectorandGovernmentalsocommittodevelopinterventionsto‘de-risk’catalyticindustrialprojects.Furthermore, the Financial Sector and Government commit to implement aguaranteefacilitytoextendthetermoffinancingprovidedtoindustrialprojects,whichwillbefundedbyGovernment.SectoralEnterpriseandSupplierDevelopmentFundswillalsobecreatedbytheFinancialSector.PrivateandPublicsectorCollaboration

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Government will convene an Infrastructure Funding Task Team to supportdevelopment infrastructure projects to crowd-in private-sector expertise andinvestment.DistressedFirmFundGovernmentwillcontinuetosupport the IDCcommitmentstowardsdistressedfirmfundingaspartofitsoverallfundingsupport.SectoralInterventionsAgricultureandagro-processingvaluechainFruitValueChainSocial partners support the initiatives that have been agreed to support thefurtherdevelopmentof the fruit value chain. A number of projects have beenidentifiedtosupportthisintervention.WesternGautengagri-industrialclusterSibanye-Stillwater through a coalition of key stakeholders has developed aprogramme to build a large-scale agri-industrial cluster in the West Rand.Sibanye-Stillwaterhascommittedtomakeavailable30000hectaresofprimelandfor agricultural development. It is estimated that this project will leveragebetweenR15bnandR30bnofinvestment.20000hectaresofwarehousingspace,aswellastrainingfacilitiesandhostelsfor3000people(withassociatedkitchenfacilities)willalsobemadeavailable.ImprovingandexpandingtheGrain/LivestockValueChainSocial partners agreed to grow the industry on a partnership basis, throughinitiatives such as expansion of grain production by Black farmers throughpartnerships between commercial farmers and government. Business andgovernmentcommittoworkingonprocessestostreamlinecontractmanagementfortheCropEstimateCommitteesoastoallowittodelivertimeousinformationthatwillassistsupplysidemanagementandexports.

BlendedfinancemodelsforagriculturalsupportThe Land Bank as the financial administrators, commercial banks, and DAFF,DRDLR,andProvincialDepartmentsofAgriculture(PDA).willdevelopblended

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financialinstrumentsusingpublicandprivatefunds:thiswillconsistofapublicsectorgrantcomponentfromDAFFandDRDLR,andaloancomponentfromtheLandBankandcommercialbanks,referredtoasa‘softloan’.TheLandBankandDAFFhassignedanMoU,withR100mtransferredtoLandBank,andmorethanR500movertheMTEFperiod.Eighteen(18)projectshavebeenassessedbytheLandBankalready.

Agbiz and BASA have also developed a blended finance model designedspecificallytomakeadditionalfundsavailabletospeedupthelandredistributionprogramme. The proposal is designed to assist potential redistributionbeneficiaries toaccesscapital toacquire land.Commercial farmerswillpartnerwithpotentialbeneficiaries,approachacommercialbanktoobtain50%fundingfromacommercialbankandthiswouldbematchedby50%grantmoneyfromagrantallocationcommittee.Inaddition,theprivatesectorcansupplycapitaluptoR1billionperannumtodoubleupontheavailablefundsforlandredistribution,dependent on beneficiary approval by the grant allocation committee (usingpredeterminedcriteria),anddependentonthenumberofwillingparticipants.Agri-ParksGovernmentwillprioritisetheestablishmentof9Agri-Parks.TheDRDLRisintheprocess of finalising the Agri-Park policy, which will determine criticalinformationsuchasthemake-upofthegoverningentity,possibleincentivesandthedevelopmentalprerequisitesforshareholdingarrangementsandinvestmentopportunities.SmartVillages:FarmWorkerHousing,LandOwnershipandAgropreneurshipThePro-AgriGroupoffarmersandDRDLRwillcommittotheprovisionoflandbyfortheestablishmentofSmartVillages.Thisincludestheimplementationofpilotsat18identifiedsites.AccelerationofproductivelandreformGovernment and Business agree in principle to explore the possibility of co-operatingonatechnicalleveltoensurethattheelectronicplatform-e-cadastre--incorporatesadditionalsourcesofland-basedinformationinthefuture.SocialPartnerswillexplorethepossibilityofintroducingaLandReformOmbudsmantospeeduplandreform.

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Metals,MachineryandMiningEquipmentUpstreamMiningEquipmentSocial Partners agreed: to continue supporting the Mandela Mining Precinct,especially in developing capacity to drive supplier development andcompetitiveness; also to intensively pursue the export market opportunitiesidentifiedintheExportRoadmap,includingtargetedexportpromotionactivitiesespeciallyontheAfricancontinent;developpartnershipsandseekcommitmentfromtheMiningCompaniestoassignresourcesandgrantaccesstodatainorderto upgrade the mining supply-chain so as to improve the mining sector’scompetitiveness; and transform domestic manufacturers in order to enableMiningCompaniestoachievethetargetssetinMiningCharterIII.DownstreamMetalsandMachinerySocialpartnersagreedasetofinterventionssuchasthosesetoutbelow,thatinorder to develop and deepen South Africa’s industrial capabilities in thedownstreammetalsandmachineryvalue-chains.Thisincludes:Governmentwillexpeditiouslyfinaliseanexporttaxonscrapmetal;Governmenthasfinalisedthe Framework for Short-term Negotiated Pricing Agreements and will nowexpedite the implementation thereof; Business, Labour and Government willpartnertocommunicateavailableincentives,especiallytheavailabilityoftheSteelDownstreamCompetitivenessFund;andBusiness,LabourandGovernmentwilldeveloparegionalstrategyforthesectortotakeadvantageofthegrowthoftheminingsectorontheAfricancontinent.Clothing,Textiles,Leather&FootwearValue-chainSocialPartnerssupporttheprocesstowardsthefinalisationoftheRetail-Clothing,Textiles, Leather and Footwear Masterplan 2030 (R-CTLF). The Masterplancontemplatesincreaseduptakeoflocallyproducedgoodsbydomesticretailers.Themodalitiesarebeing finalisedby industry stakeholdersatpresentbutwillincludeanumberofinterventions,amongstothers:theCTCPshouldbecontinueduntil new incentives are developed to support the R-CTLF 2030 Masterplan;cooperativevaluechainengagementswillleadtogreatervaluechainsynergiesandincreaselocalsourcing;andthatSARSwillworkintensivelytocombatillegalimports.

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AutomotiveValue-chainTheAutomotivesectorstakeholdersarecurrentlyengagedindevelopingaMasterPlanwhichwillincludeamongstothers;increasinglocalcontentinSouthAfricanassembled vehicles to 60%and deepen valueaddition in SAAutomotive valuechains.FurnitureValue-chainGovernment will establish a Furniture Manufacturing Hub, incorporating abusiness incubatorandsharedmanufacturingfacilities(including facilitationofaccess to information,markets and finance) and provisionof a comprehensivepackage of business development support services to increase thecompetitiveness of small furniture manufacturers. The dti’s furniture designcompetitionwouldbesupportedtodevelopandshowcaseSouthAfrica’sdesignskills. Business will initiate discussions with selected corporates to assesswhetherlocalprocurementoffurniturecouldbeincreasedabovecurrentlevels.Businesswouldwhereverappropriatelistlocally-producedfurnitureonProudlySA’sonlineretailsite.Gas-basedIndustrialisationLiquefiedPetroleumGas(LPG)Governmentwill initiatea crackdownon illegal gas refilling;will expeditiouslydevelopthemechanismstomovefromaregulatedLPGpricetoamoremarketdriven pricing; and will explore the implementation of the CompetitionCommissionrecommendations.

LiquefiedNaturalGas(LNG)Governmentwillenforcetheconditionsof theECICguarantee forMozambiqueGastosecureUSD$600mworthofSAlocalcontentinrelevantworkpackages;andthedtiwilldevelopaprocesstodistributeinformationabouttheavailableworkpackagessothatSAbusinesscancompetefortheseworkpackages.

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InfrastructuretosupporteconomicandsocialdevelopmentImprovingMunicipalInfrastructureCOGTA-commitstoestablishingajointTaskTeamtoinvestigatethechallengesbeingexperiencedatmunicipallevelandproposemeasurestoresolvetheissues,inconsultationwithBusiness,asamatterofurgency.ASISAcommitstoprovidingTechnicalAssistanceMentorshipandDevelopment(TAMDEV)toensurethatthetechnicalskillsthatareneededforinfrastructureprojectimplementationareinplace.CatalyticHumanSettlementsCatalytichousingprojectsdiffer frommegahousingprojects,as the focus isoncreatingsustainablehumansettlements,whichhasavarietyofusagesandarenotonly restricted to housing. Government commits to 48 catalytic projects, indevelopment,whichwillaimtoprovide635000housingopportunitiesacrossthecountryby2019.Theseprojectswillconsistofmixedusagespaces(commercial,residentialandretail),whichallowresidenttowork,participateinrecreationalactivitiesandliveinasinglearea.BusinessProcessServicesSocial partners agreed to a range of initiatives to support the growth of thebusinessprocessservicessectorwhichwillleadtothecreationoffiftythousand(50000)directjobsinthenextfive(5)yearsWaterandsanitationSocialpartnersagreedarangeofinitiativestosupportsoundwaterresourcemanagement.Theseincludetheinitiativesbelow:WaronLeaksprogrammeBusiness and Department of Water and Sanitation (DWS) are exploring anapproachtoaddressingthechallengeofplacementsforyouthwhohavealreadycompletedthetrainingthroughtheWaronLeaksprogramme.Theyalsocommittoworkingonacomprehensiveprogrammetosupport thedevelopmentof theartisanskillsrequiredforthewaterandsanitationsectorthroughthecentresof

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specialisationprogram;anexistingpartnershipbetweenDepartmentofHigherEducationandTraining(DHET)andtheprivatesector.WaterstewardshipSocialPartnersarecommittedtoworking inastakeholder-inclusiveprocess inwaysthatcreatecommonvisions,partnerships,greaterwatersecurity,andjobsand incomes. This will include, amongst others, activities such as site andcatchment-basedactionsandmechanismstoreducedemandandenhancesupply.As part of this process, Social Partners also agree to continue to exploreopportunities to deepen water-related natural resource managementprogrammes,suchasWorkingforWater,andpossibleadditionalprivatesector-ledapproachesonprivatesectorland.Implement Community-Based and Owned Approaches to Fast-Track RuralWaterAccess:SocialPartnersagreedthatthereisaneedtouseappropriatetechnologiestomakebestuseoflocalresources,includinglocalwaterresources.Municipalitieswillbesupported to develop programmes that are well designed and funded. Theseprojects could include rain water harvesting as a simple way to increase thesecurityofsupplyforbothurbanandruralcommunitiesandalsoawaytoreducethedemandformunicipalwaterinareaswhereitisreticulated. Thiswillbuildwaterresilience,reducewaterriskandensurethatthecountryisbetterpreparedto manage climate impacts, as well as stimulate local production through theuptakeoflocalcontent.WasteEconomyBusinesshascommittedtoarangeofprojectsforthebeneficialuseofwasteandwill explore further opportunities in this regard provided that the regulatoryimpedimentsinthisregardareaddressed.BeneficialuseofHousehold/commercialwasteThePaper andPackaging sectors have developed a plan tomove the recycledtonnagefrom2.2milliontonnesto2.7milliontonnesover5years(57%to66%of total paper and packaging), which is better than the 65% that Europe istargetingby2025.TheplanincludesanintentiontoraiseandspendR2.5billionover5yearsandcommitsto(attoday’svalues)collectandgenerateR25billion

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worth of new recycled materials within this timeframe. The industry hascommitted to taking on board theWaste Pickers IntegrationWorkingGroup’sfindingsandrecommendations,whichareexpectedtobecompletedinearly2019.BulkIndustrialWasteSocialPartnershaveidentifiedanumberofwastestreamsthatcanbebeneficiallyusedaandwillactivelypursueprojectinrelationtometallurgicalslagandcoalash,providedthattheregulatoryimpedimentsareaddressed.JustTransitionSocial Partners agreed that a statutory body should be established under thePresidencyintheformofaPresidentialClimateChangeCoordinatingCommission(PCCCC)tocoordinateandoverseetheJustTransition,includinghowtomaximisetheopportunities for jobs, includingthequantityandqualityof jobs.ThisbodycouldbeaccommodatedintherecentlyreleasedClimateChangeBill.OnSharedLearningandCapabilityImprovementThere isoften limited collaboration around learning and capability building toenhancetheuptakeofbest-practices.TheApparelandTextileAssociationofSouthAfrica(ATASA),oneoftheemployerassociationsintheclothingmanufacturingindustry,hascommittedaspartoftheJobsSummittoshareitsphilosophyandmethods with other employer organisations and industry associations, uponrequestATASA–hasdeepeneditsvaluepropositiontoitsmembersandprovidesthesharingofbest-practiceproductionandmanagementtechniquesbetweenitsmembers.Capabilities can also be improved through the sharing of information aboutappropriatetechnologies.SocialPartnersthereforeagreethattheDepartmentofTrade and Industry (the dti) and the Department for Science and Technology(DST)shouldleadthewayandusetheresearchknowledgeanddatabasesattheirdisposal to develop advisory services and communications to sectors andcompaniesaboutnewandground-breakingtechnologieswhichcouldbeadopted.TheSocialPartnersnotethepotentialtrade-offbetweentechnologyandjobs,andstronglyencourageadoptersofnewtechnologytouseinnovationasameanstosaveandgrowjobs,ratherthansimplytreatingtechnologyasasubstitutionforjobs.

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ProvidingpolicycertaintyandimprovingregulatoryefficiencyUrgentmeetingtobeconvenedbythePresidencytoaddressremainingconcernsin the following areas: immigration regulatory regime; decarbonising theeconomy; pharmaceutical regulatory regime; and streamlining of Water UseLicence Applications. Agreement has been reached with DWS to extend themaximum 300-day turnaround time for considering water use licenseapplicationsandtoreviewthecurrentwateruselicensingregulations.

Intermsofsanitaryandphytosanitarychallenges,theSocialPartnersagreedonthe need to address capacity constraints that have hampered the effectiveexecution of statutory duties related to product standard certifications andinspection,biosecurityinspectorates,toxicologistsandveterinaryservices.Theseincludetheopportunityofsecondingcapacity fromtheprivatesectororbyco-fundingtocreateadditionalcapacitywillbeexplored.SMMEINTERVENTIONSLeverageprocurementforsmallfirmsandco—operativesIdentifyexistinginterventionsacrossgovernmentandtheprivatesectorandcreate a coherent platform to enhance access and coordination of SMMEsupport.ExpansionofHubModelSocialpartnersagreedtomaximisethecollaborationbetweenpublicandprivatesectorhubsandincubatorsasacriticaltoolforSMMEdevelopment.Upscaling the implementation and monitoring of the 30% set asideGovernment spend for SMMEsandCooperatives and encouraging others toadoptsimilarprogrammes.Government will continue to advocate, educate, assist and monitor theimplementation of the 30% set aside by all Spheres of Government and itsAgencies. While the Government programme is independent of other SocialPartners, the drive to grow SMMEsmay be enhanced if similar initiatives areundertakenbyotherpartsofsociety.

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30DayspaymentSocial partners acknowledge Government’s commitment to the importance ofpaymentwithin30days fromreceiptofan invoicewithparticularreferencetosmall and micro businesses and cooperatives enterprises; unless determinedotherwise in a contract or other agreement. Business Leadership South Africa(BLSA)areactivelyencouragingtheirmemberstomakeacommitmenttopaytheinvoicesofsmallandmicroenterpriseswithinamaximumof30daysofreceipt.TownshipSupplierAssessments,LinkagesandDevelopmentInitiativeTheGautengProvincialGovernmentprojecthaspilotedtheTownshipEconomicRevitalisationProgramme:thishasbecomeakeyfocusareainwhichProvincialGovernmentispartneringwithprivatesectorplayerstosupportthegrowthanddevelopment of Township-based businesses. This project can be scaled up fordeliveryinmoreprovinces,creatingemploymentforyoungpeopleintheareasinwhichtheyliveandprovidinglocalsmallbusinesswithaccesstocapacitybuilding.SupportforruralproductionclustersandtownshipandinformalsettlemententerprisesupportGovernmentwillprovideR1,5billionforanewSmallholderSupportFundand1.5billionfortheTownshipEnterpriseFundbetweenend2018andMarch2020,withadditionalallocationsthereafteronat least thesamescale.FortheSmallholderSupportFundcivicandotherorganisationscouldapplytotheFundforfinancingtosupportagriculturalclustersinruralcommunities,linkedwherenecessarytoland redistribution programmes. For the Township Enterprise Fund: civicorganisations, municipalities, businesses, social entrepreneurs and otherorganisationscouldapplytotheFundforfinancingtosetupschemestosupporttownshipenterprise.Proposalswouldhavetoexplainhowtheywouldsupportdevelopmentofenterpriseinaparticulartownship.Proposal to upscale and re-capitalise the Khula Credit Guarantee Scheme(KCG)forgreaterimpact.Government will explore the extension of the Credit Guarantee scheme withsupportfromtheprivatesector.

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Largescaleyouthentrepreneurshipprogrammes.BiznizinaBoxThe Bizniz in Box Youth Empowerment Programme is a public-privatepartnership. Its goal is to equip young people with entrepreneurial skills andprovidethemwithactualbusinessopportunitiesintheformofready-to-operateturnkey spaza shop or internet café for new entrepreneurs, or formalising ofexistingbusinesses(spazashop, takeawaycafé, internetcafé,carwash). Itwillcreatefive-thousand(5000)jobs,twoandahalfthousand(2500)ofwhichwillbe in SMMEs. The projectwill be presented to additional commercial partners(somealreadyonboardsuchasFrigoglasswhohasthusfarsponsoredadditionalcoolers(fridges)fortheshops).Finfind youth employment and SMME funding (SMME funding readinessprogramme)The Finfind SMME Funding Readiness Programme is a public, private pilotinitiativeinvolvingBusiness,GovernmentandCommunitythatprovidestrainingandemployment forunemployedyouthtodelivervital financialrecordkeepingservicesandfinancereadinessassistancetoSMMEs,includingcooperatives,whoneedaccesstofinance.CommunityorganisationssuchastheSouthAfricanYouthCouncil,theDisabledPeopleofSouthAfricaandtheNationalFinancialLiteracyAssociationwillsupportinternselectiontoensureacommunity-inclusiveprocess.TrainingthatproducesskillsrelevanttotheSMMEmarketwillbeprovided.FormalisationandsupportinformalsectorBUSA/CCMAWebToolThisinitiativewhichiscurrentlyindevelopmentwillresultinaweb-basedtooltosupportSMMEunderstandingandcompliancewithlabourlegislation.Existing private sector support initiatives and new initiatives andparticularly partnerships with government that could be replicated andscaledupforgreaterimpactTheKYBEnterpriseIncubatorThis project will provide support to ECD entities (Women-owned enterprisesdeliveringEarlyChildhoodDevelopment).Thisincludestrainingandsupporting

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ECDpractitionerstoruntheirownbusinessanddeliveranapprovedcurriculum.TheKYBECDportfoliohas signed anMOUwithGautengDepartmentof SocialDevelopmenttodeliver2400enterprisesenabling24000childrenaccesstoECDoverthenext2years.JobsinEarlyChildhoodDevelopment(ECD)This programme will fast-track, and scale-up existing initiatives designed toachieveuniversalaccesstoquality,affordableECD.YellowwoodsandDGMurrayTrust(DGMT)willplayajointroleindrivingtheinitiative,onbehalfofabroader(existing) coalition of social donors, large scale implementation NPOs andgovernmentpartnersnational,provinciallyandlocally.BuildECD(andcreateemployment)ItwasagreedthatthisshouldinvolvetwoECDpractitionersperschoolfor5000schoolsperannum.

EDUCATIONANDSKILLSINTERVENTIONSIncreasedcommitmentsandinterventionstosupportdropoutsandmatricstohavethecompetenciesneededforemploymentandself-employmentIncreasedAccesstoTVETandCommunityCollegesSocialpartnerswillworkcollaborativelytocreatedifferentmodelsofcommunity-basedinstitutionsthatofferprogrammes(includingbothformalandnon-formalopportunities). This with the intention of ensuring that these activities areimplementedaswidelyaspossible.Installation,RepairandMaintenanceInitiativeThe Installation, Repair and Maintenance Initiative operates at the supply-demandinterfaceinopeningpathwaysfortechnicaloccupations.Onthedemandside, the NBI-Harambee partnership seeks to unlock workplace opportunitiesacrossmultiplesectors,withaparticularemphasisonthefollowing:Construction/PropertyMaintenance,Automotive,GreenEconomyManufacturing,HospitalityandTourism.Onthesupplyside,theNBIandHarambeewillworkwithaminimumof 6 public TVET colleges and 4private training centres across4 provinces to

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createtheenablingconditions for thedeliveryof technicalandworkreadinessskillsneededforentryintotheworkplace.JointcurriculumdevelopmentforTVETCollegesformanufacturingskillsCompanieswillbeencouragedtoformpartnershipswithcollegesthatareintheirgeographic area/s and are able to offer the programmes that they require theapplicantstotheircompaniestohave.Thepartnershipswillfocusonoccupationsindemand.Expandinginterventionsbypublicandprivatesectoronskillscommitmentsforyouthemployment,includingcapacitybuildingforyoungpeoplePartnershipthroughTVETtoaddresshealthimperativesNursesCollaboration between the public and private sector to train and substantiallyincreasethenumberofnursesinthehealthsector.ThedetailedmodalitiesofthisproposalsincludedtherolesandresponsibilitiesofpublicandprivatesectorwillbedevelopedposttheJobsSummit.CommunityHealthCareWorkersThisinterventioninvolvestheemploymentofcommunityhealthworkerswhowillworkwithclinicsandhospitalstoensurebetterlinkagesPartnershipthroughTVETtoaddresstherequirementsoftheTravelandTourismSectorCollaborationbetweenthepublicandprivatesectortoensurethatyoungpeoplewillworkalongsidethecurrenttourandnatureguidesfortrainingpurposes.Theyoungpeoplewillalsobesupportedtolearnforeignlanguagessothattheycanworkastouristguideswhowillassisttouriststhatspeakforeignlanguages.PathwayManagement:SolutionstoacceleratethetransitionofNEETSontopathwaysforearningincomePublic and private funding will be directed to funding work readinessinterventionsthatfindtheshortest,simplestwayto“closethegaps”thatyoungpeople have and to transition young people to these opportunities, andwhich

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don’t incentivise endless training, but rather, the conversion from training toemployment.INCLUSIVEGROWTHINTERVENTIONS WorkplacemechanismstoimproveworkplacecollaborationSocialpartnersagreed toexploreopportunities for resourcesandprocesses tosupport building more inclusive and cooperative workplace engagementsbetweenworkersandmanagementtosolveworkplaceproblems,includingataminimum: collaborative worker-centered and productivity driven workplacerelationsandproductionprocesses.CommitmentshavebeenmadebytheILOandtheProductivityandTrainingInstitute(PTI)oftheclothingindustrytosupportsuchobjectives.WorkerequityandrepresentationoncompanyboardsSocial partners recognize that mechanisms to achieve equity for previouslydisadvantagedpersonscompaniesisrequiredintermsoflegislationitdoesnotspecificallyaddressequityforworkers,althoughsomecompaniesdoincludethisintheirmechanisms. Providingworkerswithequityincompaniescanservetodeepentransformationandengagementofworkers.ReportingbyBusinessonExecutivePayRatiosinAnnualReportsSocial partners agreed in principle to disclosure on executive pay ratios andagreed that themodalitieswould be developed on the basis of research to beundertakenbyBusinessundertheoversightofaNEDLACTaskTeam.GenderPayGap:MethodologySocial partners agreed that addressing the gender wage gap is critical toincreasinginclusionintheeconomyandagreedthatastandardisemethodologyforthecalculationofthegenderpaywagegapincompanieswouldbedevelopedto facilitate understanding existing pay disparities by conducting pay equityanalysiswhichwouldallowcompaniestoworktowardsimprovingandcorrectingdisparitieswithtimelinesandtargetsset

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AddressingCustomFraudandIllegalImportsSocial partners agreed a rangeof interventions to be implemented by SARS inpartnershipwithsocialpartnerstocombatcustomsfraudandillicittrademorevigorously.

Enhance Socio – Economic Impact Assessments SocialPartnersagreedtostrengthentheimplementationoftheSocio-EconomicImpactAssessmentsystemtopaygreaterattentiontothejobsimpactofproposedlegislation.PUBLICANDSOCIALINTERVENTIONSPublic employment StrengtheningExpandedPublicWorksprogrammesSocialpartnersagreedtoworkwithGovernmenttowardsimprovingtheimpactofcertainExpandedWorksProgrammesbyexploringmechanismstoincreasethenumberofplacementsofyoungpeopleexitingprogrammesandinspecificcasesto establish collaborationwith relevant private sector initiatives to strengthenoverall outcomes (Business); improving transparency of recruitment(Community).Social Audits as part of M & E of EPWP Social Partners will develop a Social Audit Framework. The Social AuditFramework will establish linkages with the existing EPWP Monitoring andEvaluationFramework.Employment Tax Incentive Socialpartnersagreedthattheemploymenttaxincentivewillbeextendedforafurtherten(10)years,withareviewafterfive(5)years.

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Training Layoff Scheme Social Partners agreed on a range of approaches to improve the design andapplication of the Training Layoff Scheme which include establishing a singleadministrativeunitandsignificantlyreducingturnroundtimesforapplications. Anti-Corruption NationalAnti-corruptionStrategySocialPartnersagreedtosupporttheGovernment’santi-corruptionstrategyandwhere possible develop their own complementary strategies in theirconstituencies.BusinessAnti-CorruptionActivitiesBusiness has committed to developing and implementing a zero-toleranceapproach to corruption and will develop a number of initiatives to developtrainingtocombatcorruption.Enhancedtransparencyonpublicservants’financialdisclosuresandidentificationoflifestyleauditneedsaspartofsuchdisclosuresSocialpartnersacknowledgedtheintentionofGovernmenttointroducefinancialdisclosureforgovernmentemployees.GovernmentAnti-CorruptionCommunicationCampaignSocial partners have committed to support the anti-corruption communicationcampaignandagreedthatconvictionsofoffendersguiltyofcorruptionmustbeurgentlypursuedandpublicised.

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Social Partners with their signatures below hereby declare theircommitmenttothisAgreementanditsannexures.BusinessName DateSignatures:_________________________________ CommunityName DateSignatures:____________________________ Labour Name DateSignatures:______________________________ GovernmentName DateSignatures:_________________________________